GEOMATEC CO., LTD.

Business Details

Geomatec Co., Ltd. operates under the mission of "contributing to the progress of society as a professional in thin films and production technology," manufacturing and selling film deposition processing substrates and materials such as ITO and metal for displays, semiconductors, electronic components, and other applications. The company consists of a single segment, the Film Deposition Processing Business. Raw materials are sourced through a combination of paid and free supply from customers and independent procurement. Beginning this fiscal year, the company abolished the former "Mobility" category and reorganized products into categories based on product characteristics.

Recent Overview

Both net sales and ordinary profit increased; net income rose 77.2% year on year due to the recognition of deferred tax assets

In FY2026 (ending March 2026), the company achieved net sales of ¥6,008 million (up 13.8% year on year), operating profit of ¥341 million (up 5.4%), and ordinary profit of ¥429 million (up 17.3%). Growth was led by Thin-Film Products for Semiconductors & Electronic Components, up 31.9% year on year, while Thin-Film Products for Displays also grew 16.5%. The company recorded extraordinary income of ¥32 million in gain on sale of fixed assets and ¥207 million in subsidy income. Reflecting the outlook for future performance, the company recognized deferred tax assets, resulting in a ¥186 million gain from income tax adjustment, and net income came to ¥638 million (up 77.2% year on year). Beginning this fiscal year, the company changed its product categorization, abolishing the "Mobility" category. The full-year forecast for FY2027 (ending March 2027) calls for net sales of ¥5,800 million (down 3.5% year on year), operating profit of ¥350 million, ordinary profit of ¥385 million, and net income of ¥355 million.

Key Products

Growth Drivers

• Stable trend in demand for test wafers for semiconductors and electronic components, and expanding applications in surveillance cameras, industrial printer heads, and next-generation energy (up 31.9% year on year in the current period)
• Significant increase in orders for anti-reflective/anti-fouling film for cover panels in the Display category toward the fourth quarter
• Continued firm trend in semiconductor demand driven by expanding generative AI-related investment and increasing data center demand
• Improved profitability through productivity gains and greater efficiency in manufacturing costs and SG&A expenses (SG&A expenses decreased by ¥92 million year on year)
• Expectations for continued high growth in semiconductor and electronic component applications and sales expansion through strategic solutions transactions in FY2027 (ending March 2027)

Risks

• Risk of continued sluggish orders for antistatic film for automotive LCD display panels in the Display category
• Demand fluctuations and resource price increases due to uncertainty in US trade policy and geopolitical risks (such as escalating tensions in the Middle East)
• Risk of renewed impact from production cuts in automobiles due to intensifying competition in the Chinese market
• Decline in consumer sentiment due to continued price increases, with potential spillover effects on demand for final products
• Risk of sales fluctuation in specific product categories, such as the absence of equipment sales solutions transactions (the Other category declined 9.3% year on year)
• Full-year sales forecast for FY2027 (ending March 2027) projects a 3.5% year-on-year decline (¥5,800 million), indicating an outlook for lower revenue